Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.
This leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?
“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)
The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.
The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)
Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?
Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.
If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.
Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?
If you’re in the New York area, you’ll have a chance to meet CEO Mike Morhaime and executive VP of product development Frank Pearce. They’ll be a New York Best Buy signing copies of the title if you’re lucky to be in the area and plan to go out at midnight to get it. We’re not that lucky, but we’re also not standing in line this year for an event.
Thanks to the New Hampshire’s “State of Emergency” it looks as if we’ll have to delay the podcast a bit this week. We have had no electricity in four days and continue to have to deal with lack of power in our day-to-day life.
Sorry Paul, I just don’t do hate.
Jordan, your description of Rage reminds me of how I felt after finishing Doom 3. Not a bad game, but I wouldn’t pay 60 USD for it.
@Resident Evil 6 on-disc DLC unlocked by modders
Bwa ha ha ha ha :))
Way to go modders! As far as I am concerned, the contents id already free (if you bough the game).
Dan, interesting point there, it could be something to be unlocked.
@World of Warcraft cities laid waste by first level priest
What makes it funny is that Blizzard is now going after the hacker. Jeez, why not invest the time in finding other such bugs and patch those as well? Talk about the wrong way to spend time and energy.
@QOTW: None, unfortunately. I had very little time to play any game in the first half of the year, I doubt I’ll have more in the fall or winter. Heck, I still have Shadowrun to finish, Portal 2, the Penumbra games and so on.
I might pick up a game or two if there’s a sale on Steam – maybe Company of Heroes or Metro 2033, but again, no new game, and with very little chance of playing them these months.
@Cheating AI: Red Alert was also cheating.
And yes, Quake 3 bots were able to accurately figure out the velocity vector of the player in order to lead their rockets (cheating). True. But you could also change your direction after the rocket was shot. And in the mean time, you would have to place your own rockets close enough to frag them. That’s the challenge, beat a cheating computer.
Turns out the Resident Evil 6 DLC is free after all. The next DLC will probably unlock the rest of the copntent on the disc.
@Sony sues Kevin Butler actor for appearing in Wii commercial: In my opinion they are making a big deal over nothing. It’s not like someone was going to buy a PS3 but then decided to buy some tires because there was a chance they could win a Wii. I even read that his exclusivity contract expired a few days before the ad aired.
@QOTW: This fall I only plan to buy Assassin’s Creed III, so that I can save up some money for the Wii U. It is at the top of my list because I know for sure that I will enjoy it, especially now that it’s finally changed to another setting.
P.S. I would love to hear that Doctor Who podcast some time soon. If any of you haven’t seen it, here’s the brilliant unshot scene that would have been perfect in the last episode: http://www.youtube.com/watch?v=XWU6XL9xI4k
@Sony and Kevin Butler
Never heard of the guy. Only seen him once during the E3. They didn’t market him outside US. Fully agree with DynamicJul. Much Ado about Nothing. Sony’s lawyers just want a thicker pay check this Christmas.
@Warcraftopocalyps
I wish I was there. That’s what I love about MMOs. Sometimes stuff like that happens. Before it died, Face of Mankind was like that every day. Something bonkers would happen all the time. To bad that Blizzard will probably find the guys, fine them $1 million and get them imprisoned in Guatanamo.
@AI cheating
I had far to many experiences with this. The eternal bane of shooters was making the AI super accurate. In RTS they would hammer you with endless waves of enemies. Takes out all the fun out of challenging yourself. Left4Dead is a primary example. On expert the AI flaunt all the rules in an attempt to rape you into dust. It’s frustrating but ridiculously satisfying if you succeed.
@Gameboy Micro
Here is the reason why it didn’t sell. The day I went out to buy a Micro I instead ended up buying a pre-owned DS with a game for less cash. And it could play GBA games as well. What was the point releasing a Micro after DS anyway?
o hai, i’m sorry, i could not post last podcast. i always post when i can :3
to begin my feedback i’d like to apologize to Shawn on last podcast’s giveaway on choosing the same game as him (half life). if i had seen that i’d have choosen crash bandicoot 3.
@jonah calling me drunk on 281st podcast
1st: i did not meant “‘real time’ reviews” as in real time real time, it was a way for me to say “more often reviews for games that get patched often”.
AND I ONLY GIVE FEEDBACK WHILE DRUNK SOMETIMES >=] (not now, not then)
@Resident Evil 6 on-disc DLC unlocked by modders:
i bet if were not for the Street fighter X tekken “agreement” that capcom made with the consumers after the on disk DLC was discovered, this would not be a free one.
@QOTW:
idk, i’m saving money to see if medal of honor: warfighter is worth of my hard drive space. and if dishonored is as good as it looks, i’ll buy it on the winter steam sale. what about CoD:BO2 you ask? nope.avi
@QOTW
Just bought the new Pokemon. But I don’t think they count as anything major these days. Getting my mits on Halo 4. That’s my target. Hope 343 industries don’t muck it up. Planning to import a Wii U. Straight from Japan. To play all those Japanese Wii titles I missed. And just try to imagine Assasins Creed 3 in Japanese.